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DISCLAIMERJohnson Matthey PLC endeavours to ensure the accuracy of the information and materialscontained within this presentation, but makes no warranty as to accuracy, completeness orsuitability for any particular purpose. Johnson Matthey PLC accepts no liability whatsoever inrespect of reliance placed by the user on information and materials contained in thispresentation, which are utilised expressly at the user’s own risk. In particular, thispresentation and the information and materials in this presentation are not, and should not beconstrued as, an offer to buy or sell or solicitation of an offer to buy or sell, any regulatedprecious metal related products or any other regulated products, securities or investments, ormaking any recommendation or providing any investment or other advice with respect to thepurchase, sale or other disposition of, any regulated precious metal related products or anyother regulated products, securities or investments including, without limitation, any advice tothe effect that any precious metal related transaction is appropriate or suitable for anyinvestment objective or financial situation of a prospective investor. A decision to invest in anyregulated precious metal related products or any other regulated products, securities orinvestments should not be made in reliance on any of the information or materials in thispresentation. Before making any investment decision, prospective investors should seekadvice from their financial, legal, tax and accounting advisers, take into account theirindividual financial needs and circumstances and carefully consider the risks associated withsuch investment decisions. This presentation does not, and should not be construed as actingto, sponsor, advocate, endorse or promote any regulated precious metal related products orany other regulated products, securities or investments.


Platinum


Platinum in 2012

• A market in deficit by 400,000 oz• A very different shape to the market compared to 2011

• A substantial fall in primary and secondary supply• Disruption to mining in South Africa and the closure of marginal

operations expected to result in a 10% fall in global supply• Lower recycling of platinum due to low prices encouraging collectors

to hold on to autocatalyst scrap

• Stable demand• A strong performance from the jewellery sector in China and India• Autocatalyst demand for platinum to fall by 1% as weaker European

demand is offset by growth elsewhere• Lower demand in cyclical industrial applications


Platinum supply

South African supplies to reach an 11-year low in 2012


Platinum supply

‘000 oz 2011 2012 % changeSouth AfricaRussiaNorth AmericaZimbabweOthersTotal

4,855835350340100

6,480

4,250790340360100

5,840

(12)(5)(3)

60

(10)


Platinum supply: South Africa

• Severe disruption to South African output in 2012• Strikes, stoppages and closure of marginal operations will affect

pgm sales from South Africa this year• Our full-year forecast includes production losses due to strikes and

stoppages to the end of September, but does not make allowances for disruption thereafter

• Cost pressures on the supply side continue• Wage and electricity cost inflation• Weak pgm prices for much of the year• Exchange rate fluctuations

• Some operations remain cash negative on an operating expenditure basis. Capex is being squeezed


Platinum demand

‘000 oz 2011 2012 % changeSupplies Autocatalyst IndustrialJewelleryInvestmentGross DemandRecyclingStock Movement

6,4803,1052,0502,480

4608,095

(2,045)430

5,8403,0701,7852,725

4908,070

(1,830)(400)

(9.9)(1)

(12.9)9.96.5

(0.3)(10.5)

Light duty diesel demand -105,000 oz

Light duty gasoline demand +30,000 oz

Heavy duty diesel demand +40,000 oz


Gross platinum autocatalyst demand

In 2012, weakness in Europe has been largely offset by growth elsewhere


Gross platinum autocatalyst demand share


Platinum demand


6,4803,1052,0502,480

4608,095

(2,045)430

5,8403,0701,7852,725

4908,070

(1,830)(400)

(9.9)(1)

(13)9.96.5

(0.3)(10.5)


Platinum industrial demand

Lower purchasing in glass and electrical sectors in 2012 but strong growth in non-road emissions

control (counted in Medical & Other)


Platinum demand


6,4803,1052,0502,480

4608,095

(2,045)430

5,8403,0701,7852,725

4908,070

(1,830)(400)

(9.9)(1)

(13)106.5

(0.3)(10.5)


Gross platinum jewellery demand

Opening of new retail stores in China in 2012 has spurred manufacturing of platinum jewellery


Estimated monthly purchasing of platinum by the Chinese jewellery industry

Once again in 2012, the trade has bought into price dips


Platinum demand


6,4803,1052,0502,480

4608,095

(2,045)430

5,8403,0701,7852,725

4908,070

(1,830)(400)

(9.9)(1)

(13)107

(0.3)(10.5)


Platinum investment demand

ETF investment has largely tracked the price in 2012


Platinum ETF holdings


Platinum supply and demand

‘000 oz 2011 2012 % changeSupply Autocatalyst IndustrialJewelleryInvestmentGross demandRecyclingStock Movement

6,4803,1052,0502,480

4608,095

(2,045)430

5,8403,0701,7852,725

4908,070

(1,830)(400)

(10)(1)

(13)107

(0)(10.5)



‘000 oz 2011 2012 % changeSupply Gross demandRecyclingStock Movement

6,4808,095

(2,045)(25)

5,8408,070

(1,830)430

(10)(0)

(11)


Platinum recycling

Autocatalyst and jewellery recycling have slowed in response to weaker prices in 2012



‘000 oz 2011 2012 % changeSupply Gross demandRecyclingNet demandStock movement

6,4808,095

(2,045)6,050

430

5,8408,070

(1,830)6,240(400)

(10)(0)

(11)3


Palladium


Palladium in 2012

• A swing of over 2 million ounces from surplus to deficit

• Falling supply• Lower sales of Russian state stocks, of 250,000 oz• Supply from South Africa impacted by recent disruptions• Contraction of underlying output in Russia

• Rising gross demand• Autocatalyst demand for palladium to reach a record high of

6.48 million ounces• Physical investment demand to move by over 900,000 oz from net

negative to net positive demand• Industrial demand to weaken due to thrifting in electrical and dental

applications


Palladium supply

In 2012, global palladium supplies to fall to lowest level since 2003


Palladium supply

‘000 oz 2011 2012 % changeSouth AfricaRussia primaryRussia stocksNorth AmericaZimbabweOthersTotal

2,5602,705

775900265155

7,360

2,4002,600

250890280150

6,570

(6)(4)

(68)(1)

6(3)

(11)


Palladium demand


7,3606,0302,480

505(565)8,450

(2,345)1,255

6,5706,4802,410

450385

9,725(2,240)

(915)

(10.7)7

(2.8)(10.9)

(168.1)15.1(4.5)

Record year for autocatalyst demand

Growth in all markets apart from Europe

Palladium substitution continuing in diesel catalysts


Gross palladium autocatalyst demand

Higher purchasing in other regions to offset declining European demand in 2012


Palladium demand


7,3606,0302,480

505(565)8,450

(2,345)1,255

6,5706,4802,410

450385

9,725(2,240)

(915)

(10.7)7

(3)(10.9)

(168.1)15.1(4.5)


Palladium industrial demand

Growth in chemical demand, declining electrical and dental demand in 2012


Palladium demand


7,3606,0302,480

505(565)8,450

(2,345)1,255

6,5706,4802,410

450385

9,725(2,240)

(915)

(10.7)7

(3)(11)

(168.1)15.1(4.5)


Gross palladium jewellery demand

Further weakening of the Chinese market in 2012


Palladium demand


7,3606,0302,480

505(565)8,450

(2,345)1,255

6,5706,4802,410

450385

9,725(2,240)

(915)

(10.7)7

(3)(11)

()15.1(4.5)


Palladium ETFs in Europe and North America

ETF investment demand turned positive again in 2012


Palladium ETF holdings


Palladium supply and demand

‘000 oz 2011 2012 % changeSupply Autocatalyst IndustrialJewelleryInvestmentGross demandRecyclingStock Movement

7,3606,0302,480

505(565)8,450

(2,345)1,255

6,5706,4802,410

450385

9,725(2,240)

(915)

(11)7

(3)(11)

15(4.5)



‘000 oz 2011 2012 % changeSupply Gross demandRecyclingStock Movement

7,3608,450

(2,345)()

6,5709,725

(2,240)

(11)15(4)


Palladium recycling

In 2012, collectors have been holding on to autocatalyst scrapin anticipation of higher prices




7,3608,450

(2,345)6,1051,255

6,5709,725

(2,240)7,485(915)

(11)15(4)23


Rhodium supply and demand


765906

(280)626139

703973

(227)746(43)

(8)7

(19)19


Outlook


Platinum: 2013 outlook

• Supply:• Ongoing disruption and possible restructuring of the South African

pgm mining industry• Difficult to expect an increase in global supply on 2012 levels

• Demand: • Modest growth forecast• Steady performance in autocatalyst and industrial applications• Investment demand will respond to price volatility

Recycling will be a key factor in the platinum market balance: sustained higher prices could drive higher recycling of

autocatalyst scrap


Platinum price forecast: the next six months

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

2011 2012

$1,800

$1,625

$1,400

$/oz


Palladium: 2013 outlook

• Supply:• Few or no Russian state stock sales• Limited opportunity for growth in primary supplies

• Demand:• Another year of solid autocatalyst demand expected• Industrial demand also forecast to be robust

The response of investment demand and recycling to price movements will help determine the palladium market balance

in 2013


Palladium price forecast: the next six months

500

550

600

650

700

750

800

850

900

2011 2012

$750

$650

$550

$/oz


#PlatinumInt2012

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